[The following information applies to the questions displayed below.] [Income st

Question

[The following information applies to the questions displayed below.]

[Income statement and balance sheet data for Great Adventures, Inc., are provided below.]

[Please help me with the answer that are incorrect. Help would be much appreciated, thank you so much!]

Great Adventures Problem 12-1 The following information applies to the questions displayed below.J Income statement and balance sheet data for Great Adventures, Inc., are provided below GREAT ADVENTURES, INC. Income Statement For the Year Ended December 31, 2017 Revenues: Service revenue (clinic, racing, TEAM) Sales revenue (MU watches) $563,000 138,000 Total revenues $701,000 Expenses: Cost of goods sold (MU watches) Operating expenses Depreciation expense Interest expense Income tax expense 80,000 305,276 60,000 30,724 63,000 Total expenses 539,000 Net income $162,000

Explanation / Answer

Sr No Ratio Calculation Result a. Gross Profit (MU)= =(138000-80000)/138000 42.03% b. Return on Assets= =162000/(2001986+267250)/2 14.28% c. Profit Margin = =162000/701000 23.11% d. Asset Turnover = =701000/(2001986+267250)/2            0.62 e Return On Equity Stock holder's Equity 2017 2016 Common Stock                                               125,000        25,000 Paid in Capital                                           1,105,500                 -   Retained Earning                                               195,900     153,400 Treasury Stock                                               (99,000)                 -                                             1,327,400     178,400 Average Stockholders'Equity                                               752,900 Return on Equity = =162000/752900 = 21.52%

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